XRP price chases $2 after breaking bull flag to new 2024 high
After the altcoin continued to form a higher high (HH) pattern, XRP (XRP) entered the new year at $1.68. The crypto asset is up 40% this week, and could overtake BNB to become the fifth largest currency in the market.
XRP 4-Hour Chart. Source: Cointelegraph/TradingView
XRP active accounts increased 100% in November.
XRP price has increased 232% in the last 30 days, while onchain metrics also show positive momentum. Data from xrpscan highlighted that the number of active accounts or unique senders on the XRP network increased from 15,592 on November 1 to 47,044 on November 16.
Number of active accounts on the XRP registry. Source: xrpscan
Total active accounts doubled in November, from 12,000 to 25,000 this month. Similarly, the number of new accounts activated on the XRP registry saw a significant increase in November, indicating an influx of new users on the network.
The bullishness surrounding XRP has led to Ripple's strategic partnership with Archax to launch a token money market fund on the XRP registry.
In addition, Bitwise, a crypto index fund manager, announced on November 7 that it will rename the European XRP ETP, a physically backed product for European investors to use XRP.
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XRP saw $2 but overbought conditions point to a “spread”.
XRP's recent breakout occurred after the price showed a significant breakout from a bullish flag pattern. A newly formed high indicates a bullish continuation in the chart, opening the possibility of further reversals.
XRP 4-Hour Chart. Source: TradingView
Based on the Fibonacci Extension Law of the $1 swing low trend, XRP's immediate target is between $1.95 and $2.05, which includes the previous bull market high at $1.97, which will act as resistance above.
Independent crypto analyst Mikibul also mentioned a possible target of $2.
“$XRP 2017 Kind of Support Rumbles. Hit $2, experience a pullback, and then continue the straight bearish rallies to a new cycle high of maybe $10.
However, it is important to note that the medium-term and long-term charts show clear bearish differences.
XRP 1-Day Chart. Source: TradingView
Another important analysis shows an inverse relationship between price and trading volume since November 16. This indicates that XRP is experiencing a distribution phase, market traders may want to sell.
Therefore, considering that trading volumes in the last three days have been the lowest since November 10, the possibility of a bear market reversal increases.
Related: Is XRP Price About to Crash Again?
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
